GLG Partners Reports Third Quarter 2007 Earnings



    
    -   Net Income of USD46 Million; Adjusted Net Income of USD29 Million, Up
        160% From Q3 2006

    -   Net Assets Under Management of USD20.5 Billion, Up 49% From Q3 2006

    -   Total Inflows of USD1.8 Billion During Q3 2007, Including Managed
        Account Inflows and Gross Fund-Based Inflows
    

    LONDON, Oct. 24 /CNW/ - GLG Partners (GLG), (Bloomberg: 493048Z LN) a
leading alternative asset manager, today reported net income of USD46 million
for the quarter ended September 30, 2007 and USD375 million for the first nine
months of 2007. Adjusted net income (net income less limited partner profit
share) was USD29 million, up 160% year-over-year, for the quarter ended
September 30, 2007 and USD168 million, up 99% year-over-year, for the first
nine months of 2007.
    GLG's net assets under management as of September 30, 2007 reached
USD20.5 billion (net of assets invested from other GLG managed funds), up 10%
from June 30, 2007 and 49% from September 30, 2006. GLG's gross assets under
management (including assets invested from other GLG managed funds) were
USD23.6 billion at September 30, 2007, up 10% from June 30, 2007 and 48% from
September 30, 2006. A combination of performance and healthy inflows drove the
growth in assets under management (AUM) as set forth below in Table 1.
    "Our diversified model continued to work in the volatile markets of the
summer, showing particular strength in Emerging Markets, led by Greg Coffey,
and in the European strategies, led by GLG Co-Founder, Pierre Lagrange, as
well as substantial net inflows broadly in our alternative strategies", said
Noam Gottesman, Co-Founder, Managing Director and Co-CEO of GLG. "We are
looking forward to the upcoming completion of the reverse acquisition
transaction with Freedom Acquisition Holdings (Amex:   FRH) (Amex:  
FRH.U)(Amex:   FRH.WS) (Bloomberg: FRH/U US) ("Freedom") in the coming weeks and
remain excited about the prospects for the future expansion and growth of our
business."

    
                       Table 1: Assets Under Management
                              (USD in millions)

                                                        As of September 30,
                                                     ------------------------
                                                           2007         2006

    Gross Fund-Based AUM                             USD 21,524   USD 14,519
    Managed Accounts AUM                                  1,905        1,042
    Cash and Other Securities                               164          372
    Gross AUM                                        USD 23,593   USD 15,932
    YoY % Change                                             48%
    Net AUM                                          USD 20,466   USD 13,718
    YoY % Change                                             49%


                               Three Months Ended          Nine Months Ended
                                     September 30,              September 30,
                          ------------------------   ------------------------
                                2007         2006          2007         2006

    Opening Gross
     Fund-Based AUM:      USD 19,485   USD 14,351    USD 16,053   USD 11,484
    Fund-based inflows
     (net of redemptions):     1,798          (72)        3,350        1,541
    Fund-based net
     performance (gains
     net of losses):             241          240         2,121        1,494
                          ----------   ----------    ----------   ----------
    Closing Gross
     Fund-Based AUM:      USD 21,524   USD 14,519    USD 21,524   USD 14,519
                          ----------   ----------    ----------   ----------

    % of Opening Gross Fund-Based AUM

    Gross Fund-based
     inflows (net
     of redemptions):            9.2%        (0.5%)        20.9%        13.4%
    Gross Fund-based net
     performance (gains
     net of losses):             1.2%         1.7%         13.2%        13.0%


    Opening Managed
     Accounts AUM:         USD 1,843      USD 937     USD 1,233      USD 335
    Inflows (net
     of redemptions):             38           96           457          766
    Net performance
     (gains net of losses):       24            8           215          (60)
    Closing Managed
     Accounts AUM:         USD 1,905    USD 1,042     USD 1,905    USD 1,042


    % of Opening Managed Accounts AUM

    Inflows
     (net of redemptions):       2.1%        10.3%         37.1%       228.8%
    Net Performance
     (gains net of losses):      1.3%         0.9%         17.5%      (17.9%)


    Note:  Net performance is based on both opening AUM and inflows during
           the period and can be influenced by heavy inflows and fluctuations
           in currencies.
    

    Financial Summary

    For Q3 2007, total net revenues and other income was up 79% to
USD103 million compared to USD57 million in the same quarter last year,
primarily due to increased management fees as a result of performance and
strong inflows across the GLG managed funds. For the first nine months of
2007, total net revenues and other income increased 78% over the first nine
months of 2006 to USD594 million.
    Performance fees were immaterial in Q3 2007 as it is our practice to
recognize performance fees when they crystallize, generally on June 30 and
December 31 of each year. Accordingly, when Q4's performance fees are reported
they will reflect crystallized second half performance.
    Management and administration fees totalled USD95 million or 1.9% of
average net AUM for Q3 2007, increases of 69% and 29 basis points (bps),
respectively, from the same quarter in 2006. For the first nine months of
2007, management and administration fees totalled USD242 million, or 1.8% of
average net AUM, increases of 56% and 16 bps, respectively, over the first
nine months of 2006. Other income of USD7 million reflects primarily currency
related gains on cash held on our balance sheet during Q3 2007.
    The total level of comprehensive limited partner profit share,
compensation and benefits ("PSCB") rose by 60% for Q3 to USD46 million. This
is down by 539 bps to 45% when expressed as a percentage of revenues, versus
the same period last year. PSCB is a financial measure not prepared under U.S.
generally accepted accounting principles, or GAAP, and includes limited
partner profit share as described below under "Non-GAAP Financial Measures."
Employee compensation and benefits for Q3 2007 increased USD25 million over
the same quarter last year to USD29 million primarily due to the reversal in
Q3 2006 of selected employee compensation and benefits accruals as certain key
personnel ceased to be employees and became participants in the limited
partner profit share arrangement.
    Please note that compensation expense and limited partner profit share
tied to fund performance is only recognized when the related performance fees
crystallize, generally on June 30 and December 31 of each year. When Q4 is
ultimately reported, the portion of compensation expense and limited partner
profit share tied to performance will reflect crystallized second half
performance as well as any adjustments to amounts accrued in the first half.
    PSCB for the first nine months of 2007 increased by 63% to USD318 million
but fell by roughly 471 bps to 54% when expressed as a percentage of revenues
when compared with the same period a year ago. Employee compensation and
benefits for the first nine months of 2007 fell by 6% year-over-year to USD111
 million as a result of certain key personnel ceasing to be employees when GLG
established its limited partner profit share arrangement in 2006.
    General, administrative, and other expenses for Q3 2007 increased 56% to
USD26 million year-over-year, but fell 372 bps as a percentage of revenues to
25%. For the first nine months of 2007, these expenses rose 82% year-over-year
to USD80 million or by 29 bps to 13% when expressed as a percentage of
revenues, reflecting increases in operating costs due to significant growth in
the business as well as certain one-time costs recognized in the first half of
2007.
    "Our risk management and controls infrastructure performed well in what
proved to be a turbulent period for capital markets globally", said Emmanuel
Roman, Co-CEO and Managing Director of GLG. "Furthermore, our operations
continue to scale and we are encouraged by the initial momentum with our new
strategic partners, Istithmar and Sal. Oppenheim."

    Investor/Analyst Conference Call and Webcast

    GLG will be hosting a conference call for investors and analysts today at
11:00 AM EDT (New York City) / 4:00 PM BST (Guernsey/London). The dial-in
number for the live conference call is +1-866-238-1665 in the US or
+44(0)207-15-32-010 in the UK. To access a webcast of the conference call,
please register via GLG's website http://www.glgpartners.com.

    The conference call replay can be accessed by dialling +1-888-266-2081 in
the US or +1-703-925-2533 in the UK and entering access code # 1156360. The
webcast replay of the conference call will also be available on the Company's
website at http://www.glgpartners.com. Both the dial-in and webcast replay of
the call will be available beginning on October 24, 2007 at 2pm EST or 7pm BST
until November 7, 2007.

    About GLG

    GLG, the largest independent alternative asset manager in Europe and one
of the largest in the world, offers its base of long-standing prestigious
clients a diverse range of investment products and account management
services. GLG's focus is on preserving client's capital and achieving
consistent, superior absolute returns with low volatility and low correlations
to both the equity and fixed income markets. Since its inception in 1995, GLG
has built on the roots of its founders in the private wealth management
industry to develop into one of the world's largest and most recognized
alternative investment managers, while maintaining its tradition of
client-focused product development and customer service. As of September 30,
2007, GLG managed gross AUM of over USD23 billion.

    Forward-looking Statements

    This press release contains statements relating to future results that
are forward-looking statements. Actual results may differ materially from
those projected as a result of certain risks and uncertainties. These risks
and uncertainties include, but are not limited to: market conditions for GLG
managed investment funds; performance of GLG managed investment funds, the
related performance fees and the associated impacts on revenues, net income,
cash flows and fund inflows/outflows; the cost of retaining GLG's key
investment and other personnel or the loss of such key personnel; risks
associated with the expansion of GLG's business in size and geographically;
operational risk; litigation and regulatory enforcement risks, including the
diversion of management time and attention and the additional costs and
demands on GLG's resources; risks related to the use of leverage, the use of
derivatives, interest rates and currency fluctuations; costs related to the
proposed acquisition; failure to obtain the required approvals of stockholders
of Freedom Acquisition Holdings, Inc. for the proposed acquisition
transaction; and risks that the closing of the transaction is substantially
delayed or that the transaction does not close, as well as other risks and
uncertainties, including those set forth in the definitive proxy statement
filed by Freedom with the Securities and Exchange Commission on October 11,
2007. These forward-looking statements are made only as of the date hereof,
and GLG undertakes no obligation to update or revise the forward-looking
statements, whether as a result of new information, future events or
otherwise.

    
                                     GLG

                 Unaudited Combined Statement of Operations

                             (USD in thousands)

                                             Three Months Ended
                                                   September 30,
                                             2007          2006     % Change

    Net revenues and other
     income

    Management fees                   $    78,558   $    47,010           67%
    Performance fees                          803         1,102           NM
    Administration fees                    16,306         9,128           79%
    Other                                   6,905             -           NM

    Total net revenues and other          102,572        57,240           79%
     income

    Expenses

    Employee compensation and             (28,959)       (3,735)          NM
     benefits
    General, administrative and           (25,891)      (16,576)          56%
     other
                                          (54,850)      (20,311)         170%

    Income from operations                  47,722       36,929           29%
    Interest income, net                     3,048        1,029          196%
    Income before income taxes              50,770       37,958           34%
    Income taxes                           (4,735)       (1,803)         163%

    GAAP Net income                    $    46,035  $    36,155           27%


                                              Nine Months Ended
                                                   September 30,
                                              2007         2006     % Change

    Net revenues and other
     income

    Management fees                    $   198,892  $   129,981           53%
    Performance fees                       343,835      177,047           94%
    Administration fees                     42,986       25,050           72%
    Other                                    7,875        1,883          318%

    Total net revenues and other           593,588      333,961           78%
     income

    Expenses

    Employee compensation and             (110,526)    (118,194)          NM
     benefits
    General, administrative and            (79,634)     (43,721)          82%
     other
                                          (190,160)    (161,915)          NM

    Income from operations                 403,428      172,046          134%
    Interest income, net                     4,694        3,603           30%
    Income before income taxes             408,122      175,649          132%
    Income taxes                          (33,020)      (14,803)         123%

    GAAP Net income                    $   375,102  $   160,846          133%



                                     GLG
                           Combined Balance Sheet
                             (USD in thousands)

                                                          As of        As of
                                                      September     December
                                                            30,          31,
                                                           2007         2006
                                                     (unaudited)
    Assets

    Cash and cash equivalents                       $   391,732  $   273,148
    Investments                                             163          201
    Fees receivable                                      40,687      251,963
    Prepaid expenses and other assets                    32,647       25,944
    Property and equipment (net of accumulated
     depreciation and amortization of $11,669
     and $10,117 respectively)                            8,966        6,121
    Total Assets                                    $   474,195  $   557,377

    Liabilities and Members' Equity

    Current Liabilities
    Rebates and sub-administration fees payable     $    19,473  $    19,146
    Accrued compensation and benefits                    63,199      102,507
    Income taxes payable                                 19,038       25,094
    Distributions payable                                71,311        9,310
    Accounts payable and other accruals                  14,753       19,716
    Other liabilities                                     3,654        5,100
    Total Current Liabilities                           191,428      180,873

    Non-Current Liabilities
    Loan payable                                         13,000       13,000
    Minority Interest                                     2,031        1,552
    Total Non-Current Liabilities                        15,031       14,552

    Commitments and Contingencies                             -            -
    Total Liabilities                                   206,459      195,425

    Members' Equity
    Members' equity                                       6,843        6,356
    Retained Earnings                                   257,238      352,690
    Accumulated other comprehensive income                3,655        2,906
    Total Members' Equity                               267,736      361,952
    Total Liabilities and Members' Equity           $   474,195  $   557,377


                                     GLG

         Non-GAAP Adjusted Net Income for the Three and Nine Months
               Ended September 30, 2007 and September 30, 2006

                                        (USD in thousands)

                          Three Months Ended        Nine Months Ended
                                September 30,            September 30,
                              2007      2006     %       2007     2006     %
                                            Change                    Change


    Derivation of non-GAAP
     adjusted net income

    GAAP Net              $ 46,035  $ 36,155   27%  $ 375,102 $ 160,846  133%
     income

    Deduct: limited        (17,000)  (25,000) (32%)  (207,500)  (76,530) 171%
     partner profit share

    Non-GAAP              $ 29,035  $ 11,155  160%  $ 167,602 $  84,316   99%
     adjusted net
     income


                                     GLG

            Non-GAAP Expenses for the Three and Nine Months Ended
                  September 30, 2007 and September 30, 2006

                                          (USD in thousands)

                        Three Months Ended            Nine Months Ended
                              September 30,                September 30,
                            2007      2006      %      2007       2006     %
                                           Change                     Change

    Non-GAAP
     expenses

    GAAP employee       $(28,959)  $(3,735)       $(110,526) $(118,194)
     compensation
     and benefits

    Limited              (17,000)  (25,000)        (207,500)   (76,530)
     partner
     profit share

    Non-GAAP            $(45,959) $(28,735)   60% $(318,026) $(194,724)   63%
    Comprehensive
     limited
     partner
     profit share,
     compensation
     and benefits

    GAAP General,        (25,891)  (16,576)   56%   (79,634)   (43,721)   82%
     administrative
     and other

    Non-GAAP            $(71,850) $(45,311)   59% $(397,660) $(238,445)   67%
     total
     expenses

    Non-GAAP
    Financial
    Measures

    GLG presents certain financial measures that are not prepared in
accordance with U.S. generally accepted accounting principals, or GAAP, in
addition to financial results prepared in accordance with GAAP.
    Comprehensive Limited Partner Profit Share, Compensation and Benefits
("PSCB"): GLG's management assesses its personnel-related expenses based on
the measure "non-GAAP comprehensive limited partner profit share, compensation
and benefits", or non-GAAP PSCB. This non-GAAP financial measure reflects GAAP
employee compensation and benefits, adjusted to include the limited partner
profit shares.
    Beginning in mid-2006, GLG entered into partnerships with a number of its
key personnel who ceased to be employees and instead became holders of direct
or indirect limited partnership interests in certain GLG entities. These
individuals continue to provide services to GLG, either directly or through
two limited liability partnerships. Through their partnership interests, these
key individuals are entitled to profit shares in the form of priority
distributions paid as partnership draws. In addition they may be entitled to
an additional discretionary limited partner profit share. The key personnel
that are participants in the limited partner profit share arrangement
described above do not receive salaries or discretionary bonuses from GLG.
    Under GAAP, limited partner profit share cannot be presented as employee
compensation expense. However, management believes that it is more appropriate
to treat limited partner profit share as expense when considering business
performance because it reflects the cost of the services provided to GLG by
these participants in the limited partner profit share arrangement. As a
result, GLG presents the measure non-GAAP PSCB to show the total cost of the
services provided to GLG by both participants in the limited partner profit
share arrangement and employees. For purposes of this non-GAAP financial
measure, GLG recognizes the limited partner profit share in the period in
which the revenues related to the limited partner profit share are recognized,
rather than the period in which the limited partner profit share distributions
are made.
    Non-GAAP PSCB is not a measure of financial performance under GAAP and
should not be considered as an alternative to GAAP employee compensation and
benefits.
    Adjusted Net Income: GLG's management assesses the underlying performance
of its business based on the measure "adjusted net income", which adjusts for
the difference between GAAP employee compensation and benefits and non-GAAP
PSCB as discussed above. Adjusted net income is not a measure of financial
performance under GAAP and should not be considered as an alternative to GAAP
net income as an indicator of GLG's operating performance or any other
measures of performance derived in accordance with GAAP.
    GLG is providing these non-GAAP financial measures to enable investors,
securities analysts and other interested parties to perform additional
financial analysis of GLG's personnel-related costs and its earnings from
operations and because it believes that they will be helpful to investors in
understanding all components of the personnel-related costs of GLG's business.
GLG's management believes that the non-GAAP financial measures also enhance
comparisons of GLG's core results of operations with historical periods. In
particular, GLG believes that the non-GAAP adjusted net income measure better
represents profits available for distribution to stockholders than does GAAP
net income.
    Investors should consider these non-GAAP financial measures in addition
to, and not as a substitute for, or superior to, measures of financial
performance prepared in accordance with GAAP. The non-GAAP financial measures
presented by GLG may be different from non-GAAP financial measures used by
other companies.

    (USD in            Q3 2007     Q2 2007     Q3 2006      LTM(1)     YTD(2)
     millions)

    Gross AUM           23,593      21,522      15,932     23,593     23,593

    Net AUM             20,466      18,585      13,718     20,466     20,466

    Average             19,533      17,343      13,592     16,805     17,576
     net AUM

     (USD in thousands)

       Management       78,558      62,991      47,010    255,184    198,892
        fees

       Performance         803     340,512       1,102    561,527    343,835
        fees(3)

       Administration   16,306      14,036       9,128     52,751     42,986
        fees

       Other             6,905         472           -     10,891      7,875

    Total net          102,572     418,010      57,240    880,353    593,588
     revenues
     and other
     income

     Employee          (28,959)    (56,518)     (3,735)  (160,717)  (110,526)
      compensation
      and benefits

     General,          (25,891)    (27,979)    (16,576)  (104,177)   (79,634)
      administrative
      and other

     Net interest        3,048         171       1,029      5,749      4,694
      income

    GAAP net income     50,770     333,685      37,958    621,208    408,122
     before taxes

     Income tax         (4,735)    (25,031)     (1,803)   (47,443)   (33,020)
      expense

    GAAP net income     46,035     308,654      36,155    573,765    375,102
     after taxes

     Limited           (17,000)   (184,047)    (25,000)  (332,420)  (207,500)
      partner profit
      share

    Non-GAAP adjusted   29,035     124,607      11,155    241,345    167,602
     net income(4)


    Management fees and    1.9%        1.8%        1.7%       1.8%       1.8%
    Administration fees/
     Avg. net AUM(5)
    Total net revenues     2.1%        9.6%        1.7%       5.2%       4.5%
     and other income
     /Avg. net AUM(5)
    Employee compensation   45%         58%         50%        56%        54%
     and benefits and
     limited partner profit
     share/ Total net
     revenues and other
     income
    General, administrative 25%          7%         29%        12%        13%
     and other expenses/
     Total net revenues
     and other income
    Non-GAAP adjusted net   28%         30%         19%        27%        28%
     income/Total net
     revenues and other
     income
    Effective income tax    14%         17%         14%        16%        16%
     rate

    (1) LTM period is Oct 1, 2006 to Sept 30, 2007.
    (2) YTD period is Jan 1, 2007 to Sept 30, 2007.
    (3) Performance fees are recognised when they crystallize, generally on
        June 30 and December 31 each year. As a result, the performance fee
        revenues do not reflect revenues from uncrystallised performance fees
        during Q1 and Q3.
    (4) See "Non-GAAP Financial Measures" for further detail.
    (5) Ratios annualized for Q3 2006 as well as Q2 and Q3 2007.



                            As of    YOY            As of    YOY  Qtr on Qtr
                          June 30,     %     September 30,    %     % Change
                     2007    2006  Change      2007    2006 Change  Q3    Q3
                                                                  2007  2006

    Alternative  $ 12,826  $ 9,059    42%  $ 14,713 $ 9,184    60%  15%    1%
     strategy
    Long-only       4,432    3,730    19%     4,561   3,735    22%   3%    0%
    Internal        1,627    1,086    50%     1,651   1,089    52%   1%    0%
     FoHF
    External          599      477    26%       598     511    17%   0%    7%
     FoHF
    Gross          19,485   14,351    36%    21,524  14,519    48%  10%    1%
     Fund-Based
     AUM
    Managed         1,843      937    97%     1,905   1,042    83%   3%   11%
     accounts
    Cash              194      339   (43%)      164     372   (56%)(16%)  10%
    Total Gross    21,522   15,627    38%    23,593  15,932    48%  10%    2%
     AUM
    Less:          (1,642)  (1,020)   61%    (1,653) (1,091)   52%   1%    7%
     internal
     FoHF
     investments
     in GLG funds
    Less:             (56)    (13)   343%       (55)    (48)   15%  (1%) 281%
     external
     FoHF
     investments
     in GLG funds
    Less:          (1,239) (1,127)    10%    (1,419) (1,075)   32%  14%  (5%)
     alternatives
     fund-in-fund
     investments
    Net AUM      $ 18,585 $ 13,467    38%  $ 20,466 $ 13,718   49%  10%    2%


                 Three Months Ended   Three Months Ended   Nine Months Ended
                            June 30,        September 30,       September 30,
                     2007      2006        2007     2006       2007     2006



    Opening      $ 17,060  $ 12,934    $ 19,485 $ 14,351   $ 16,053 $ 11,484
     Gross
    Fund-Based
     AUM
    Fund-based      1,393     1,407       1,798      (72)     3,350    1,541
     inflows
     (net of
     redemptions)
    Fund-based      1,032        10         241      240      2,121    1,494
     net
     performance
     (gains net
     of losses)
    Closing      $ 19,485  $ 14,351    $ 21,524 $ 14,519   $ 21,524 $ 14,519
     Gross
     Fund-Based
     AUM

    % of Opening
     Gross
     Fund-Based
     AUM
    Gross             8.2%     10.9%        9.2%    (0.5%)    20.9%     13.4%
     Fund-based
     inflows
     (net of
     redemptions)
    Gross Fund-based  6.0%      0.1%        1.2%     1.7%     13.2%     13.0%
     net performance
     (gains net of
     losses)

    Opening       $ 1,398     $ 505     $ 1,843    $ 937   $ 1,233      $335
     Managed
     Accounts AUM
    Inflows (net      351       536          38       96       457       766
     of redemptions)
    Net                94      (104)         24        8       215       (60)
     performance
     (gains net
     of losses)
    Closing       $ 1,843     $ 937     $ 1,905  $ 1,042   $ 1,905    $1,042
     Managed
     Accounts AUM

    % of Opening
     Managed
     Accounts AUM
    Inflows (net     25.1%    106.1%        2.1%    10.3%     37.1%    228.8%
     of
     redemptions)
    Net               6.7%    (20.6%)       1.3%     0.9%     17.5%   (17.9%)
     Performance
     (gains net
     of losses)


     Note: Net performance is based on both opening AUM and inflows during
           the period and can be influenced by heavy inflows and fluctuations
           in currencies.

    




For further information:

For further information: Investors/analysts: GLG: Simon White, Chief
Financial Officer, +44(0)20-7016-7000, simon.white@glgpartners.com; Michael
Hodes, Acting Director of Investor Relations, (212) 224-7223,
michael.hodes@glgpartners.com; Media: Finsbury: Rupert Younger, Amanda Lee,
+44(0)20-7251-3801, rupert.younger@finsbury.com, amanda.lee@finsbury.com; Andy
Merrill, (212) 303-7600, andy.merrill@finsbury.com

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